Home builder sentiment rose 1 point to 47 in January, according to the National Association of Home Builders (NAHB). Although confidence is still in contraction territory below the breakeven point of 50, it’s at the highest level since April and has been trending in the right direction.
What’s the bottom line?
Builders continue to balance their hopes for an improved regulatory environment with concerns about elevated costs, home prices and rates. NAHB chief economist, Robert Dietz, noted that, “NAHB is forecasting a slight gain for single-family housing starts in 2025, as the market faces offsetting upside and downside risks from an improving regulatory outlook and ongoing elevated interest rates.”